JAKARTA – PT Delta Giri Wacana Tbk (DGWG) revealed plans for a new fertilizer plant expansion in Palembang after its Initial Public Offering (IPO) today (13/1).

DGWG successfully raised Rp202.94 billion from the IPO, offering 882.53 million shares at Rp230 per share.

According to its IPO prospectus, DGWG plans to allocate 53.2% of the funds for working capital in pesticide production, while the remaining 46.8% will be directed to its subsidiary, PT Fertilizer Inti Technology (FIT), for fertilizer production.

Regarding fertilizer production, DGWG has plans to expand its plant in Palembang with a capacity of 120,000 tons. "Hopefully, it will be completed by early 2026," said David Yaory, President Director of DGWG, during a meeting at the Indonesia Stock Exchange (IDX).

Currently, DGWG operates 1 agrochemical plant, 1 fertilizer plant, and 1 raw material production facility for agrochemicals. "So, there are 3 plants currently," Yaory added.

For 2025, Yaory mentioned that the company's fertilizer production is targeted to reach 400,000 tons. With the additional 120,000 tons capacity by early 2026, DGWG plans to achieve a fertilizer production of 500,000 tons in 2026.

On the other hand, DGWG’s raw material production is still affected by the depreciating rupiah exchange rate. However, Yaory remains optimistic, noting that the ratio of imported to locally sourced materials is balanced. “I think it’s about 50-50,” he added.

“And we also always minimize the risks from our current exchange exposure,” he concluded after the DGWG IPO ceremony today (13/1). (ZH)